Companies that develop management information systems (MIS) in-house are able to write the exact programs and reports that their employees need. Managers can request a specific report in a specific format, and the MIS department can create that report. However, such a capability has high internal costs since the company must maintain a well-trained MIS staff and other resources necessary to provide such a response. Some companies decide to use outside (third-party) applications that offer off the shelf functionality, but which are not custom-designed to the company's exact needs. Companies which choose this option are likely to realize a lower cost of purchasing and implementing the product and, if no major modifications are involved, in maintaining the product over a period of time. However, they lose the ability to quickly and economically create custom reports for specific managers.
So long as a company has either an in-house system or a third-party system, managers learn to adapt the application to their needs. The process is not always easy, but managers learn the limitations and the advantages of the system. Significant problems can arise, however, when a company makes the decision to move from one type of system to another, with the major problems coming about when a company changes from an internal system to an external system.
The problems that arise come about in part because of the human tendency to resist change, and in part because managers must sacrifice some of the productivity they have come to expect. Depending on the type of system being installed, some managers and even entire companies must learn to do business in a whole new way. Because the problems are overtly identified with the computer system, it is often left to the MIS manager to resolve, although the actual problem may be much deeper.
One area that is of particular concern to manager is that of special reports. Managers depend on having a...